Why the internet is so appealing: Scaling
One of the primary reasons the internet is so appealing to me is scaling. You have the potential to scale out your operations if you focus on the right activities. Not everything can be scaled. If you focus your energies on the processes that can be scaled, it will pay huge dividends down the road.
What is scaling?
Simply put, if something is scalable, they more you build, they less energy it requires to maintain per unit. For instance, lets say I have a website that makes $3,ooo per month and takes 10 hours a week to properly maintain. Then I buy a second website with a similar time requirement and income. Individually they both require 10 hours per week, but I can maintain them both at the same time and it only takes me 15 hours per week. Now I doubled my income by only increasing my workload by 50%. This is just a basic example of what is possible. The effects of scaling really come to the surface when you begin to deploy fully automated websites. With automation, you can increase your income without hardly affecting your workload. Build a network of automated site and life is good.
When I build my empire I want to focus my efforts on building scalable processes. This will greatly increase my long-term income potential. There are very few other places other than the internet where you can harness the principle of scaling. For instance, I am sure hot dog cart vendors make a decent living. Lets say one hot dog cart makes $50,000 per year. Not bad for schlepping hot dogs. However, a hot dog owner cannot run two carts at the same time. Thereby he has a limit to his potential income. He could hire staff, but that dramatically increases his overhead, which will have a negative effect on his overall ROI. This is the reason I want to run a digital empire, and not a hot dog empire.
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Tagged as internet marketing, Operations, scaling + Categorized as Operations
wonderful post